Hang Seng slips 0.5pc, power producers weak
Hong Kong shares fell further from a 3½-month high on Wednesday, with Chinese power producers extending losses, hit by a Citi downgrade on fears that a possible tariff cut could hurt profit margins.
The Hang Seng Index closed down 0.5 per cent at 23,261.08 points, its second loss after ending Monday at its highest since early February. The China Enterprises Index of the top Chinese listings in Hong Kong slipped 0.3 per cent.
Mainland China shares ended mixed on Wednesday, with power producers down on lingering concerns that potential coal import curbs could hurt margins.
Huaneng Power plunged 8.3 per cent, leading a tumble among Chinese power producers, after Citi analysts downgraded their view on the stock from “buy” to ”neutral,” assuming a 2 per cent tariff cut for coal-fired power plants in the third quarter.
Guangzhou Auto Group jumped 7.4 per cent the China Passenger Car Association said sales in May could increase 14 per cent from a year earlier, a figure that would maintain a blistering start to the year, the official China Securities Journal reported.
The HSBC China flash manufacturing purchasing managers’ index for May is due on Thursday.